Every adult living in the rental should sign the underlying lease agreement. The basic rental agreement shows that each renter is responsible for following all terms and conditions of the lease agreement. Otherwise, legal action can be taken against such a person.
It acts as a contract, which outlines the terms of use of the rental property. Also, it secures the tenant, usage of the property, and ensures the landowner regular payments for a certain period in exchange.
What Is a Basic Rental Agreement?
A basic rental agreement is a legal signed document between a tenant and a landlord for a defined time. However, it normally covers a short time period, not necessarily time is stated or not.
In the agreement signed, there are pre-discussed terms and conditions on which both landlord and tenant agree. It acts as a binding contract that both parties can implement in court. Additionally, it is a legal document, which is full of crucial business details.
It shows how long the renters can occupy the landlord’s property and the amount of rent due each month. Moreover, if a property owner or landlord agrees to extend the tenure of the contract, then it can be changed with the mutual decision.
Download Free Basic Rental Agreement Template
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When Do I Need a Basic Rental Agreement?
- The landlord who wants rental payments on time and maintenance of their property must register a basic rental agreement. The rental agreements signed between the landlord and tenants are binding for both of them. Therefore, the tenant has to agree with all the terms of use indicated by the landlord in the agreement.
- If the landlord wants to sell the house, but there is no one to buy. Then, they need to make a deal through a basic rental agreement. With the registering of a legal contract, the landlords can avoid selling problems. They can also maintain a bond with the tenant.
- If tenants do not want to make extra payments in rent, then they must go with a basic rental agreement. Under all the terms and restrictions mentioned in the rental agreement sample, tenants are stimulated to creditworthiness through regular rent payments.
- The renters who are in a position to buy the property or pay more than market value. Then, they must go with the basic rental agreement. It is one of the crucial aspects which prevent them from extra paying and fulfilling rental needs.
What Are The Benefits Of Using The Basic Rental Agreement?
Benefits of a basic rental agreement to the landlord:
- The main advantage of a basic rental agreement is stability. Being a landlord, you have a legally bound document. It assures a rental income for a specific period.
- If the renter wants to move before the end of the agreement. Then, they are liable to pay for the rent. It is possible only due to the underlying lease agreement.
- If the landlords prefer to sign short-term leases due to short time travel, a basic rental agreement provides flexibility.
Benefits of a basic legal agreement to tenants:
- The tenants can have the legal evidence of the rental agreement after signing it. It means that if renter faces any disputes, then they can use this registered agreement to help them to get clear of legal issues.
- The rental agreement saves renters from paying extra charges. It is because the landlord cannot raise the rent under the terms of the deal.
- It becomes easy to avoid legal situations if you have the authority to live in place legally. The rental agreements listed under the authorized registrar means that tenants have legal rights on the property.
What Is Included In A Basic Rental Agreement?
- Names of the landlord and renter: The agreement includes the name of the landlord and renter. Additionally, it can include some information from an authorized manager (if applicable).
- Description of the property: The agreement must include the complete address of the leased property. Along with it, the contract must specify the critical areas that the renters are not allowed to access.
- Terms of tenancy: The basic rental agreement creates short-term rentals that can renovate automatically. The tenants and landlords need to be specific and must mention the start date and expiration date in the agreement.
- Amount of rent: The landlord can mention rent price along with the payment method. To avoid confusion, a rental agreement should include the amount of the rent and grace period. It should also include any charges if a payment cheque bounces.
- Security fees: The rental agreement allows both landlords and renters to avoid some common disputes. It is a great idea to include all the essential details related to security charges.
- Restriction and maintenance policies: The tenants must follow the repair and maintenance policies, which can alert them to maintain clear premises. The landlord having any restrictions on tenant repairs must mention it in the lease agreement.
- Contact information: The landlords should consider contact information, including texts and instant messaging. If the landlords accept email, then they can mention it in the agreement.
Download Free Basic Rental Agreement Template
Just as you have learnt, our template makes leasing entirely simple and efficient. No loopholes in the agreement that will trigger disputes between both parties. Totally reliable! The free template is primed, ready for duty. Click below to get it now!
Conclusion
A basic rental agreement acts as a robust contract between a landlord and a renter. It covers the property renting for short periods. With this agreement, it becomes easy for the renters to avail of the benefits of government laws.
Moreover, you can check our website CocoSign for free templates of a basic rental agreement and other different types of agreements.
DOCUMENT PREVIEW
LEASE
BASIC RENTAL AGREEMENT OR RESIDENTIAL LEASE
This Rental Agreement or Residential Lease shall evidence the complete terms and conditions under which the parties whose signatures appear below have agreed. Landlord/Lessor/Agent, _____________________________, shall be referred to as "OWNER" and Tenant(s)/Lessee, _____________________________, shall be referred to as "RESIDENT." As consideration for this agreement, OWNER agrees to rent/lease to RESIDENT and RESIDENT agrees to rent/lease from OWNER for use solely as a private residence, the premises located at _____________________________________________in the city of __________________________________.
1. TERMS: RESIDENT agrees to pay in advance $______ per month on the ____ day of each month. This agreement shall commence on _____,___ and continue; (check one)
A.__ until _______, ___ as a leasehold. Thereafter it shall become a month-to-month tenancy. If RESIDENT should move from the premises prior to the expiration of this time period, he shall be liable for all rent due until such time that the Residence is occupied by an OWNER approved paying RESIDENT and/or expiration of said time period, whichever is shorter.
B.__ until ____________, ______ on a month-to-month tenancy until either party shall terminate this agreement by giving a written notice of intention to terminate at least 30 days prior to the date of termination.
2. PAYMENTS: Rent and/or other charges are to be paid at such place or method designated by the owner as follows _____________________________________. All payments are to be made by check or money order and cash shall be acceptable. OWNER acknowledges receipt of the First Month's rent of $__________, and a Security Deposit of $__________, and additional charges/fees for ______________________________, for a total payment of $__________. All payments are to be made payable to __________________________________.
3. SECURITY DEPOSITS: The total of the above deposits shall secure compliance with the terms and conditions of this agreement and shall be refunded to RESIDENT within _____ days after the premises have been completely vacated less any amount necessary to pay OWNER; a) any unpaid rent, b) cleaning costs, c) key replacement costs, d) cost for repair of damages to premises and/or common areas above ordinary wear and tear, and e) any other amount legally allowable under the terms of this agreement. A written accounting of said charges shall be presented to RESIDENT within _____ days of move-out. If deposits do not cover such costs and damages, the RESIDENT shall immediately pay said additional costs for damages to OWNER.
4. LATE CHARGE: A late fee of $_____, (not to exceed ___% of the monthly rent), shall be added and due for any check shall be treated as unpaid rent, and subject to an additional fee of $_________.
5. UTILITIES: RESIDENT agrees to pay all utilities and/or services based upon occupancy of the premises except
____________________________________.
6. OCCUPANTS: Guest(s) staying over 15 days without the written consent of OWNER shall be considered a breach of this agreement. ONLY the following individuals and/or animals, AND NO OTHERS shall occupy the subject residence for more than 15 days unless the expressed written consent of OWNER obtained in advance
__________________________________________________.
7. PETS: No animal, fowl, fish, reptile, and/or pet of any kind shall be kept on or about the premises, for any amount of time, without obtaining the prior written consent and meeting the requirements of the OWNER. Such consent if granted, shall be revocable at OWNER'S option upon giving a 30 day written notice. In the event laws are passed or permission is granted to have a pet and/or animal of any kind, an additional deposit in the amount of $_________ shall be required along with additional monthly rent of $_______ along with the signing of OWNER'S Pet Agreement. RESIDENT also agrees to carry insurance deemed appropriate by OWNER to cover possible liability and damages that may be caused by such animals.
8. LIQUID FILLED FURNISHINGS: No liquid filled furniture, receptacle containing more than ten gallons of liquid is permitted without prior written consent and meeting the requirements of the OWNER. RESIDENT also agrees to carry insurance deemed appropriate by OWNER to cover possible losses that may be caused by such items.
9. PARKING: When and if RESIDENT is assigned a parking area/space on OWNER'S property, the parking
area/space shall be used exclusively for parking of passenger automobiles and/or those approved vehicles listed on RESIDENT'S Application attached hereto. RESIDENT is hereby assigned or permitted to park only in the following area or space ____________________________. The parking fee for this space (if applicable is $________ monthly. Said space shall not be used for the washing, painting, or repair of vehicles. No other parking space shall be used by RESIDENT or RESIDENT'S guest(s). RESIDENT is responsible for oil leaks and other vehicle discharges for which RESIDENT shall be charged for cleaning if deemed necessary by OWNER.
10. NOISE: RESIDENT agrees not to cause or allow any noise or activity on the premises which might disturb the peace and quiet of another RESIDENT and/or neighbor. Said noise and/or activity shall be a breach of this agreement.
11. DESTRUCTION OF PREMISES: If the premises become totally or partially destroyed during the term of this Agreement so that RESIDENT'S use is seriously impaired, OWNER or RESIDENT may terminate this Agreement immediately upon three day written notice to the other.
12. CONDITION OF PREMISES: RESIDENT acknowledges that he has examined the premises and that said premises, all furnishings, fixtures, furniture, plumbing, heating, electrical facilities, all items listed on the attached property condition checklist, if any, and/or all other items provided by OWNER are all clean, and in good satisfactory condition except as may be indicated elsewhere in this Agreement. RESIDENT agrees to keep the premises and all items in good order and good condition and to immediately pay for costs to repair and/or replace any portion of the above damaged by RESIDENT, his guests and/or invitees, except as provided by law. At the termination of this Agreement, all of above items in this provision shall be returned to OWNER in clean and good condition except for reasonable wear and tear and the premises shall be free of all personal property and trash not belonging to OWNER. It is agreed that all dirt, holes, tears, burns, and stains of any size or amount in the carpets, drapes, walls, fixtures, and/or any other part of the premises, do not constitute reasonable wear and tear.
13. ALTERATIONS: RESIDENT shall not paint, wallpaper, alter or redecorate, change or install locks, install antenna or other equipment, screws, fastening devices, large nails, or adhesive materials, place signs, displays, or other exhibits, on or in any portion of the premises without the written consent of the OWNER except as may be provided by law.
14: PROPERTY MAINTENANCE: RESIDENT shall deposit all garbage and waste in a clean and sanitary manner into the proper receptacles and shall cooperate in keeping the garbage area neat and clean. RESIDENT shall be responsible for disposing of items of such size and nature as are not normally acceptable by the garbage hauler. RESIDENT shall be responsible for keeping the kitchen and bathroom drains free of things that may tend to cause clogging of the drains. RESIDENT shall pay for the cleaning out of any plumbing fixture that may need to be cleared of stoppage and for the expense or damage caused by stopping of waste pipes or overflow from bathtubs, wash basins, or sinks.
15. HOUSE RULES: RESIDENT shall comply with all house rules as stated on separate addendum, but which are deemed part of this rental agreement, and a violation of any of the house rules is considered a breach of this agreement.
16. CHANGE OF TERMS: The terms and conditions of this agreement are subject to future change by OWNER after the expiration of the agreed lease period upon 30-day written notice setting forth such change and delivered to RESIDENT. Any changes are subject to laws in existence at the time of the Notice of Change Of Terms.
17. TERMINATION: After expiration of the leasing period, this agreement is automatically renewed from month to month, but may be terminated by either party giving to the other a 30-day written notice of intention to terminate. Where laws require "just cause", such just cause shall be so stated on said notice. The premises shall be considered vacated only after all areas including storage areas are clear of all RESIDENT'S belongings, and keys and other property furnished for RESIDENT'S use are returned to OWNER. Should the RESIDENT hold over beyond the termination date or fail to vacate all possessions on or before the termination date, RESIDENT shall be liable for additional rent and damages which may include damages due to OWNER'S loss of prospective new renters.
18. POSSESSION: If OWNER is unable to deliver possession of the residence to RESIDENTS on the agreed date, because of the loss or destruction of the residence or because of the failure of the prior residents to vacate or for any other reason, the RESIDENT and/or OWNER may immediately cancel and terminate this agreement upon written notice to the other party at their last known address, whereupon neither party shall have liability to the other, and any sums paid under this Agreement shall be refunded in full. If neither party cancels, this Agreement shall be prorated and begin on the date of actual possession.
19. INSURANCE: RESIDENT acknowledges that OWNERS insurance does not cover personal property damage caused by fire, theft, rain, war, acts of God, acts of others, and/or any other causes, nor shall OWNER be held liable for such losses. RESIDENT is hereby advised to obtain his own insurance policy to cover any personal losses.
20. RIGHT OF ENTRY AND INSPECTION: OWNER may enter, inspect, and/or repair the premises at any time in case of emergency or suspected abandonment. OWNER shall give 24 hours advance notice and may enter for the purpose of showing the premises during normal business hours to prospective renters, buyers, lenders, for smoke alarm inspections, and/or for normal inspections and repairs. OWNER is permitted to make all alterations, repairs and maintenance that in OWNER'S judgment is necessary to perform.
21. ASSIGNMENT: RESIDENT agrees not to transfer, assign or sublet the premises or any part thereof.
22. PARTIAL INVALIDITY: Nothing contained in this Agreement shall be construed as waiving any of the OWNER'S or RESIDENT'S rights under the law. If any part of this Agreement shall be in conflict with the law, that part shall be void to the extent that it is in conflict, but shall not invalidate this Agreement nor shall it affect the validity or enforceability of any other provision of this Agreement.
22. NO WAIVER: OWNER'S acceptance of rent with knowledge of any default by RESIDENT or waiver by OWNER of any breach of any term of this Agreement shall not constitute a waiver of subsequent breaches. Failure to require compliance or to exercise any right shall not be constituted as a waiver by OWNER of said term, condition, and/or right, and shall not affect the validity or enforceability of any provision of this Agreement.
23. ATTORNEY FEES: If any legal action or proceedings be brought by either party of this Agreement, the prevailing party shall be reimbursed for all reasonable attorney's fees and costs in addition to other damages awarded.
24. JOINTLY AND SEVERALLY: The undersigned RESIDENTS are jointly and severally responsible and liable for all obligations under this agreement.
25. REPORT TO CREDIT/TENANT AGENCIES: You are hereby notified that a nonpayment, late payment or breach of any of the terms of this rental agreement may be submitted/reported to a credit and/or tenant reporting agency, and may create a negative credit record on your credit report.
26. LEAD NOTIFICATION REQUIREMENT: For rental dwellings built before 1978, RESIDENT acknowledges receipt of the following: (Please check)
___ Lead Based Paint Disclosure Form
___ EPA Pamphlet
